Lease Extensions and Collection Freehold Purchase
Selling a flat with a short lease
Leases with less than 80 years unexpired term are more difficult to sell than leases with a longer term. Mortgage lenders generally do not like to lend on flats with short leases, as they do not provide them with enough security.
Extending a short lease
It is very important for owners of flats with a short lease to exercise their right to extend their leases, especially if they are thinking of selling. This can be done if the seller has owned their flat for at least two years.
How to sell a short lease flat
- The seller should get a professional valuation as to what the premium payable to the freeholder for a lease extension of 90 years added to the current unexpired term and ground rent reducing to a peppercorn. We can provide contact details of reputable surveyors qualified to provide a competitively priced valuation.
- Once the premium has been established the buyer and the seller should agree a reasonable proportionment of the cost of the premium.
- The buyer benefits because he does not have to wait two years before having the statutory right to extend the lease.
- The seller benefits because they can sell their flat at a better price.
- We can draft and serve the notice needed to exercise the seller’s statutory right to extend their lease.
- We can draft important clauses to be included in the Contract for Sale of the flat to ensure the buyer gets the benefit of the notice served.
- We can draft a Deed of Assignment (separate to the Contract for Sale) necessary to ensure that the buyer gets the benefit of the notice.
- We have a department that deals exclusively with lease extensions therefore we have the expertise to deal with such transactions quickly and effectively.